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Fed's Plans to Phase Out Quantitative Easing | Your Bottom Line

The Federal Reserves’ initiative to end quantitative easing has financial markets nervous about bursting the current stock market bubble, reports NFIB’s chief economist, Bill Dunkelberg, in this episode of Your Bottom Line. Quantitative easing (QE) has been employed by the government in previous periods of economic instability to increase capital. “We cannot avoid rising interest rates and their impact on asset prices,” said Dunkelberg of the impending shift in demand; as soon as the government stops buying bonds, demand for stocks will inevitably fall.